EXHIBIT 99.1
Press Release Dated April 25, 2004
PARK CITY GROUP REPORTS THIRD QUARTER INCREASE IN REVENUES, SIGNIFICANTLY
IMPROVED OPERATING EARNINGS AND SECOND CONSECUTIVE QUARTER OF PROFITABILITY
PARK CITY, UTAH - April 25, 2004 - Park City Group, Inc. (OTCBB: PKCY, Berlin:
WKN# 925919) whose technology had its beginnings in the operations of Mrs.
Fields Cookies, develops and markets patented computer software that helps its
retail customers increase their sales while reducing their inventory and labor
costs, announced today the filing of its second consecutive profitable quarter
for the quarter ended March 31, 2004.
Park City Group reported quarterly revenues of $1,508,879 as compared to
$1,391,380 in the same period last year, operating earnings of $413,352 as
compared to $169,562 for the same period last year, and net income was $101,326
as compared to a loss of $372,612 for the same period last year. "This is an
important achievement for the Company. While we have continued to meet and often
exceed our financial plan, we think two consecutive quarters of profitability
demonstrates that our strategy is on track which is important to our prospective
customers as well as our investors," states Randy Fields, Chairman and CEO of
Park City Group. "Our improvements were not just on the income statement and we
are equally as excited about the remarkable improvement in our balance sheet in
the last six months."
"We have experienced a surge in operating earnings over the past two quarters as
well as in comparison of year over year. Specifically, the operating earnings in
the second and third quarters of this fiscal year were $413,532 in Q3FY2004 as
compared to $169,562 in Q3FY2003 and $618,037 in Q2FY2004 versus ($445,235) in
Q2FY2003. This is an outstanding achievement for the Company," Fields notes.
"With the improvement in revenues and operating earnings, we are now focusing on
addressing improvements to our balance sheet."
In keeping with the stated objectives of careful cost controls, the total
quarterly costs and expenses were reduced from $1,221,819 in the same period
last year to $1,095,347 in this period. Additionally, the cash balance has
improved from $436,802 in the quarter ending December 31, 2003 to $ 897,152 in
the period ending March 31, 2004 which when coupled together with the reduction
in liabilities is a significant achievement.
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Page 2 - Mrs. Fields Cookies Co-Founder's "PKCY" Reports Increase in Revenue,
significantly Improved Operating Earning and Experiences Second Consecutive
Quarter of Profitability
Total liabilities, exclusive of deferred revenue, have been reduced by over
$1,000,000 from December 31, 2003. Deferred revenue represents the collections
in advance for annual software maintenance agreements, which is shown as a
liability, but is recorded as revenue each month over the term of the agreement.
No repayments of deferred revenue are required.
"The continued reduction in our liabilities will result in reducing our going
forward interest charges and coupled with our growth in operating earnings, the
reduction in interest charges will significantly improve our bottom line. I am
extremely pleased with our progress and we hope our shareholders and customers
recognize these actions as very positive," says Fields.
Highlights of the Third Quarter are:
o Third Quarter Revenues of $1,508,879 an 8.4% increase over same period
last year
o Operating Earnings of $413,352 a 144% increase over same period last
year
o Net Income of $169,562 major improvement of previous year's significant
loss in the same period
o Reduction of Liabilities by approximately $1 million in the period
o Company experienced two consecutive quarters of profitability
o Cash Balance improved substantially over prior quarter even with
significant liability reduction
o Stock begins trading on Third Segment of Berlin Stock Exchange
o Company Initiates New ASP Model to Address 5-50 Location Prospects
o Company announces new Center Store Inventory Offering
o Several Customers increase licenses by substantial numbers
o Two new customers in target industries of grocery and convenience
stores deploy products
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Page 3 - Mrs. Fields Cookies Co-Founder's "PKCY" Reports Increase in Revenue,
significantly Improved Operating Earning and Experiences Second Consecutive
Quarter of Profitability
Q3 and Nine Months Earnings Release and Conference Call
Park City Group will formally report its final results for the third quarter and
nine months ended March 31, 2004 on April 23, 2004. The Company will then host a
conference call on Tuesday, April 27, 2004 at 11:00 a.m. MDT. Interested parties
may join the conference call by dialing 800-341-2312 and using the PIN 2029. Any
questions may be directed to the Company by contacting us at 1-800-772-4556. We
encourage all investors to call in. Please take advantage of this chance to talk
with management of Park City Group.
About Park City Group:
Park City Group, Inc. develops and markets patented computer software that helps
its retail customers to increase their sales while reducing their inventory and
labor costs: the two largest, controllable expenses in the retail industry. The
technology has its genesis in the operations of Mrs. Fields Cookies, co-founded
by Randy Fields, CEO of Park City Group, Inc. Industry leading customers such as
The Home Depot, Victoria's Secret, The Limited, Anheuser Busch Entertainment and
Tesco Lotus benefit from our software. Feel free to contact us (Media Contact
Randy Fields) at 800.772.4556 or info@parkcitygroup.com. To find out more about
Park City Group (OTCBB: PKCY, Berlin:WKN# 925919), visit our website at
www.parkcitygroup.com.
Statements in this press release that relate to Park City Group's future plans,
objectives, expectations, performance, events and the like are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and the Securities Exchange Act of 1934. Future events, risks and
uncertainties, individually or in the aggregate, could cause actual results to
differ materially from those expressed or implied in these statements. Those
factors could include changes in worldwide and U.S. economic conditions that
materially impact consumer spending and consumer debt, changes in demand for the
Company's products and services, risks associated with the integration of
acquisitions and other investments, and other factors discussed in the
"forward-looking information" section and the "risk factor" section of the
management's discussion and analysis included in the Company's annual report on
Form 10-K for the year ended June 30, 2003 filed with the Securities and
Exchange Commission. Park City Group uses the paid services of investor
relations organizations to promote the Company to the investment community. Park
City Group does not intend to update these forward-looking statements prior to
announcement of quarterly or annual results.
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